Zim Integrated Shipping Services Ltd. (NYSE: ZIM), is in a good position to withstand any impact that the port strike could have on the US economy. The ongoing strike has the potential to cost up to four billion dollars per day.
Omar Nokta, an analyst at Jefferies, has reiterated his “buy rating” for the cargo shipping firm. He cited its adaptability in a market that is tightening.
Zim Integrated is insulated against major disruptions despite the difficulties posed by this strike that has caused port closures in the United States. It could also benefit from lower oil and shipping prices, as well as rising costs.
After the expiration of the US Maritime Alliance contract with the International Longshoremen’s Association, the strike began, which was the first since the 1970s.
This poses a grave threat to the trade sector, especially ahead of important election seasons and holiday shopping.
Zim Integrated pays a dividend that is healthy
Nokta reminds us that Zim Integrated’s shipping costs could rise. This would provide an opportunity to improve margins, as the rates are currently below $3700.
Zim Integrated also benefits from a healthy 4.52% dividend yield.
Investors seeking a total return in the next year will be attracted by this attractive rate of return.
Susquehanna Fundamental Investments, a company that has a strong track record, reported a significant investment in Zim Integrated in the second quarter, buying 105,704 Zim shares at 2,34 Million. The investment represents 0.09% or so of the business.
Zim has recently enjoyed a robust financial performance, which is reflected in the confidence that this investment company shows.
Zim Integrated enjoyed a strong second quarter
Zim’s latest earnings report revealed a stunning 48% growth year-on-year in revenue, and a 46% rise in net income, exceeding Wall Street expectations.
Zim reported an increase of 11% in volume carried year over year, with management optimistic that this trend will continue.
In August, the company increased its guidance on adjusted EBITDA for full-year from $1.55 to $3.0 billion.
Nokta, a Jefferies analyst, praised Zim’s cost discipline and suggested that the company would have a stronger second half if it maintained its current level of performance.
Zim Integrated Shipping will benefit from a favorable economic climate as the US Federal Reserve starts to reduce interest rates.
Zim Integrated is a great investment in shipping due to its strong fundamentals, position during the strike and financial performance.
Zim Integrated is well equipped to handle the current port strikes, even though many other shipping companies are struggling.
Zim Integrated Shipping Services Ltd is a notable player in global shipping due to its strong fundamentals and attractive dividend yield.
The post Zim Integrated Shipping – Is it time to purchase ZIM stocks amid port strikes? This post may change as new information becomes available
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